52 Weeks Range:
0.56 - 1.59

buy before late

cpo 2941, very soon 3000

CPO 2940.. soon 4.5

Palm
Additional rains in Southeast Asia could boost palm oil production, while the industry could also benefit from lower output of rival soy oil, Tai said.
There has already been more rain in Southeast Asia, particularly in Sabah and Kalimantan, since June, said Ling Ah Hong, director of plantation consultant Ganling Sdn. La Nina’s impact on the palm crop would depend on how strong it is, Ling said.
“A weak to moderate La Nina is usually beneficial to palm production in the following year,” he said. “However, the heavy rains, if any, may cause immediate short-term disruption to harvesting and crop quality.”
Palm oil production usually declines in December and January, after rising in August and September, said Derom Bangun, chairman of the Indonesian Palm Oil Board. More rain in those typically drier months could be positive for monthly output, providing conditions aren’t extreme, he said.

LATEST TP
TA-1.31
AMINNVEST= 1.21
HLIB=1.14

Operationally, we have assumed that TSH’s FFB production would improve by 2.0% in FY20E (1HFY20: 5.2%) and 7.3% in FY21F. Unlike other plantation companies, TSH’s FFB production in 2HFY20 may soften compared to 2HFY19 as FFB yields weaken after last year’s robust productivity. In 2HFY19, TSH’s FFB production jumped by 7.0% YoY.
Due to a higher cost of wages, we think that TSH’s ex-mill cost of production would rise to RM1,490/tonne (FY19: 1,466/tonne) in Malaysia and RM1,750/tonne (FY19: RM1,723) in Indonesia in FY20E. TSH’s fertiliser costs are expected to be flat in FY20E.

We maintain BUY on TSH Resources with an unchanged fair value of RM1.21/share. Our fair value for TSH is based on an FY21F PE of 25x.

ex-mill 1400.. so low

TSH had an aggressive new planting programme in financial year 2014 (FY14) and FY15, which reached 2,800ha each year. Subsequently, the company slowed down new planting in FY16 to FY19 to a few hundred hectares each yer, to conserve cash and reduce its net gearing level.
As at end-2019, it had 57,400ha of unplanted and 42,100ha of planted land bank.
The recent disposal will reduce the group’s total planted and unplanted land bank to 42,000ha and 32,100ha respectively.
The land in Indonesia alone accounted for 85% of its total planted area.
“We believe the unplanted land bank of 32,100ha would provide some room for the group to expand its plantation footprint and be the engine of growth for future earnings.
“The expected disposal proceeds of around RM518mil will provide greater capacity for the group to accelerate the development of its remaining unplanted land in Indonesia.
“Based on our estimate, it can help the group to fund around 23,000ha-25,000ha of land, assuming the new planting cost to be around RM20,000-RM22,000 per ha.
“However, the new planting area could be lower since the group intends to pare down its existing borrowings to improve its gearing level, which stood at 0.83 times in FY19, ” said TA.
TSH’s aggressive planting in the past had enabled it to generally enjoy double-digit FFB production growth in the past 12 years, except for selected years.
Its oil palm age profile has improved significantly compared to five years ago.
While the company’s management is expecting a flattish FFB production growth this year, growth is expected to be in the range of 7% to 11% for FY21 and FY22.
More importantly, said TA, its CPO production cost (ex-mill) of around RM1,400 per tonne reflects the efficiency of the business.

TA has maintained its “buy” recommendation on TSH with an unchanged target price of RM1.31.

KUALA LUMPUR (Sept 11): Hong Leong Investment Bank (HLIB) Research has reiterated its "neutral" rating of the plantation sector after palm oil inventory closed marginally higher at 1.7 million tonnes in August as higher output and lower exports were partly offset by lower imports and higher domestic consumption.
Following this, the research house named TSH Resources Bhd as its top pick with a "buy" call and target price (TP) of RM1.14.

cpo 2825, company still make money. no need worry, fundamental still good

cpo 2825

now que 1.95

rebound

value= 3.5-4.0

undervalue gem

profit run

Q 1.73

below 2.20 soon

limit up 1.72

main problem
banker and force selling...

waiting at 2.00

today will rebound back … plantation stock will start to move

today break 4.00

cpo 2811

Maintain BUY with unchanged earnings forecast and TP of RM1.23.

wait bonus

3.00 soon

Dato' Dr. Ir. Ts. Mohd Abdul Karim Bin Abdullah
02-Sep-2020
Disposed
911,100

tomorrow will test 4.00

COMMENTARY ON PROSPECTS AND TARGETS (Cont’d)

EMS Business

On the EMS business, the Group reiterates that it had been building its base and expanding its medical/healthcare sector since about 4 years ago. Therefore, the preceding is not a new venture for the Group. In fact, it was ISO 13485 certified, which is a pre-requisite to conduct business in the medical/healthcare industry in 2016, launched its Class 10k cleanroom the same year (2016) and was FDA (US) registered in 2018. In this medical/healthcare segment of its EMS business, it expects production to ramp up in the coming months for a particular new customer following the resolving of technical issues relating to manufacturing processes. It also anticipates the commencement of production of specific new medical/healthcare products for both existing and new customers in the immediate term. On the consumer electronics, industrial and IoT sectors of the EMS business, it expects sales in 2H’20 to pick up in tandem with many countries easing lockdowns and governments all over the world implementing stimulus packages to kick-start their respective economies.

Following the declaration by the World Health Organization (WHO) on 11 March 2020 that COVID19 is officially a pandemic, the Group which had been serving the medical/healthcare industry under its EMS flagship decided to extend its medical product portfolio to encompass COVID-19 medical aids with the dual objectives of combating COVID-19 by making up shortages and also at the same time fulfilling its corporate social responsibility as a good corporate citizen. Leveraging on its development and manufacturing expertise, it took the opportunity to manufacture nasal swabs and the NASA-JPL ventilators (VITAL ventilators). In this regard, the Group confirms that it has undergone the necessary evaluation to successfully register its subsidiary, K-One Resources Sdn. Bhd. for the manufacturer’s establishment licence granted by the Medical Device Authority (MDA) under the Ministry of Health, Malaysia (MOH). The manufacturer’s establishment licence is required for local manufacturers which intend to manufacture medical devices for supply in Malaysia. Having obtained the manufacturer’s establishment licence, the Group is awaiting the approval of MDA for the said medical devices. The mass production of the nasal swab is in place. The Group has been preparing the marketing network and is in position to reach out to the target customers locally and abroad.

e refer to the Company’s announcements dated 6 May 2020, 12 May 2020 and 16 June 2020 respectively pertaining to the manufacturing of Nasal Swabs for use in COVID-19 testing by 3D printing.

The Board of Directors of K-One Technology Berhad (“K-One Tech” or ‘Company” or “K-One Group”) wishes to announce that the Company’s wholly owned subsidiary, K-One Resources Sdn. Bhd. (“K-One Res”) has, on 3 September 2020, received the approval from the Medical Device Authority of Malaysia (MDA) for the supply of Nasal Swab in Malaysia by local manufacturing. The mass production is in place. The K-One Group has been preparing the marketing network and is in position to activate the target customers locally either directly and/or through distributors.

In addition, the K-One Group is continuing to reach out to targeted overseas markets that have potential high demand for Nasal Swabs due to running escalating COVID-19 infections or second wave infections.

The K-One Group is expected to sell the Nasal Swab on its own or may bundle the Nasal Swab with vials depending on the requirements of end users i.e. hospitals or laboratories.

The Nasal Swab is an important medical device used to collect fluid specimen from the back of the nasal cavity for COVID-19 testing. It is to be noted that it can also be used during normal times to test for other illnesses such as influenza. Thus, the Nasal Swab is expected to be a long term business beyond COVID-19.

This announcement is dated 3 September 2020.

Waiting 3.00

cpo 2823... keep up..sop soon 4.2

when share split

KUMPULAN POWERNET BERHAD ("KPOWER" OR THE "COMPANY")

- PROPOSED PRIVATE PLACEMENT;
- PROPOSED SHARE SPLIT; AND
- PROPOSED DIVERSIFICATION

(COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

cpo 2839 +55

why down? good profit

30 sen soon

Maybank target price 4.31

https://klse.i3investor.com/blogs/kenangaresearch/2020-08-14-story-h1511706527-Daily_technical_highlights_ndash_SOP_JHM.jsp

Sarawak Oil Palms Bhd (Trading Buy)
Sarawak Oil Palms is the business of cultivation of oil palm plantation, milling, refining of oil palm products and trading of oil palm products.
The group has increased its net income for 3 consecutive quarters on the back of better CPO prices. Based on its current quarter results (1QFY20), the group made a core net income of RM41m (+28% QoQ). The coming quarter earnings is expected to hold too given the pent-up demand (partly due to the Deepavali festival in November).
Based on consensus estimates, the group’s net incomes are forecasted at RM111.0m (+23.5% YoY) in FY20E and RM148.0m (+33% YoY) in FY21E. This translates to forward PERs of 18x and 15x, respectively.
Chart-wise, the stock has been trending in an upward sloping channel since the March market melt-down while forming higher lows. Given its rising RSI indicator from an oversold region and backed by above average trading volume, we thus believe the price uptrend could persist.
With that, our overhead resistance levels are set at RM3.95 (R1) (+10% potential upside) and RM4.20 (R2) (+17% potential upside).
Meanwhile, our stop loss is set at RM3.35 (-7% downside risk).

Kenanga

Good result.. eps 33.16
PE 15=4.97
PE 18=5.96

many harta supporter switch to kossan

Kossan guided that ASP for Jul and Aug is expected to increase by c.20% and c.40% respectively compared with 2QFY20 ASPs, and could see further c.5% mom increase until year end. Kossan is also expecting to increase its ad-hoc/ spot orders allocation up to c.15% of its total capacity (currently c.10%). The sustained strong demand with orders filled up till end-1H21 and ASPs being fixed 2 months prior delivery, could see the increase in prices to be fully reflected in 2H20. Overall, we estimate that selling prices will continue to increase until end of 2020 and stabilize in 1H2021 before gradually decreasing. We have raised our assumptions accordingly, as these were not forthcoming previously.

2QFY20 PATAMI could come in at between RM96m and RM116m

During the recent results briefing, management disclosed that the company will build a new Plant #20 (1.4bn/pcs/year), adjacent to its Meru factories which it had acquired for RM40m recently. The plant is expected to start contributing by 2H21. We believe that the new Plant #20 will help address previous concerns over the lack of new capacity in 2021, as Plant #19 will be fully operational by the end of the year, and the new manufacturing complex at Bidor, Perak will only start operations in 2022. With Plant #20, the average annual capacity growth for Kossan for 2019- 22 stands at 14%, higher than the 10-year average demand growth for medical rubber gloves of 8-10%.